Yonivore
10-08-2011, 10:52 AM
...to oppose the so-called "Obama jobs plan."
Charities pay dearly in jobs plan (http://www.bostonherald.com/news/opinion/op_ed/view.bg?articleid=1371773)
While the White House’s revenue calculations are highly questionable, what aren’t questionable are the consequences of the president’s proposal.
According to Internal Revenue Service figures, individuals claimed nearly $34.9 billion in charitable deductions on their federal tax returns in 2009. Households reporting $200,000 or more in annual income claimed $19.14 billion, or 54.9 percent, of these deductions.
Prior to the new jobs initiative, the president previously had gone after the charitable deduction in his fiscal 2012 budget proposal. That proposal called for limiting the tax deduction for high-income earners by as much as 30 percent.
So let’s recognize reality and do some simple math. Here is the reality: At least some well-to-do households will reduce their charitable donations if the tax deduction is cut, because more of their money will go to government, making less available for charity. Logically, at least some fraction of the $19.14 billion now going to charity would disappear.
Now for the math: A 5 percent reduction in charitable giving by those claiming a tax deduction in 2009 would have reduced total contributions by $957 million. A 20 percent drop in giving would have reduced charitable contributions by $3.8 billion.
Charities pay dearly in jobs plan (http://www.bostonherald.com/news/opinion/op_ed/view.bg?articleid=1371773)
While the White House’s revenue calculations are highly questionable, what aren’t questionable are the consequences of the president’s proposal.
According to Internal Revenue Service figures, individuals claimed nearly $34.9 billion in charitable deductions on their federal tax returns in 2009. Households reporting $200,000 or more in annual income claimed $19.14 billion, or 54.9 percent, of these deductions.
Prior to the new jobs initiative, the president previously had gone after the charitable deduction in his fiscal 2012 budget proposal. That proposal called for limiting the tax deduction for high-income earners by as much as 30 percent.
So let’s recognize reality and do some simple math. Here is the reality: At least some well-to-do households will reduce their charitable donations if the tax deduction is cut, because more of their money will go to government, making less available for charity. Logically, at least some fraction of the $19.14 billion now going to charity would disappear.
Now for the math: A 5 percent reduction in charitable giving by those claiming a tax deduction in 2009 would have reduced total contributions by $957 million. A 20 percent drop in giving would have reduced charitable contributions by $3.8 billion.